Eagle Materials Refinances Credit Agreement with Amendment No. 2

Eagle Materials Inc. (NYSE:EXP) announced on February 4, 2025, that it entered into Amendment No. 2 to its existing credit agreement. This amendment, signed with the lenders named within the agreement and JPMorgan Chase Bank, N.A., serves to modify the terms of the company’s unsecured credit facility.

The original credit agreement comprised a senior unsecured term loan A credit facility totaling $200 million (the “Existing Initial Term Loan Facility”) and a senior unsecured revolving commitments facility of up to $750 million. This revolving loan facility included a letter of credit sub-facility of $40 million and a swingline loan sub-facility of $25 million. The Existing Initial Term Loan Facility was set to mature on May 5, 2027, along with the Existing Revolving Loan Facility.

With the new amendment, the company now has a new senior unsecured term loan A credit facility of $300 million (the “New Initial Term Loan Facility”). The proceeds from this facility were utilized to fully refinance the Existing Initial Term Loan Facility, partially repay outstanding loans under the Existing Revolving Loan Facility, and cover associated fees and expenses. Additionally, a new senior unsecured revolving commitments facility of up to $750 million (the “New Revolving Loan Facility”) has been put in place to replace the Existing Revolving Loan Facility.

Under the terms of the New Revolving Loan Facility, the facility is set to mature on February 4, 2030, aligning with the maturity date of the New Initial Term Loan Facility. This agreement also provides an uncommitted incremental facility of up to $375 million, to be used for working capital needs and general corporate purposes, including potential acquisitions and investments.

The New Initial Term Loan Facility was fully drawn upon on February 4, 2025. Repayments will be made in equal quarterly installments starting from March 31, 2025, with the remaining balance due on the Term Maturity Date. The Credit Agreement allows for interest to be based on either a base rate or SOFR rate, depending on the company’s senior unsecured long-term debt rating.

Eagle Materials Inc.’s latest financial move indicates a strategic step towards managing its debt structure efficiently and optimizing its financial resources for future growth and operational needs. Investors and market analysts will likely keep a close eye on how this refinancing impacts the company’s financial outlook and overall performance in the coming quarters.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eagle Materials’s 8K filing here.

Eagle Materials Company Profile

Eagle Materials Inc, through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement, including Portland limestone cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures, as well as well as containerboard and lightweight packaging grades; manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and mining and sale of aggregates, such as crushed stone, sand, and gravel.